India and Australia today signed a historic trade accord that will further strengthen their relationship while making Australian exports to India cheaper and creating huge new opportunities for workers and businesses in both countries.

The India-Australia Economic Cooperation and Trade Agreement (IndAus ECTA) was signed by Union Minister of Commerce and Industry Piyush Goyal and Australia’s Minister for Trade, Tourism and Investment Dun Tehan in a virtual ceremony, in the presence of Prime Minister Narendra Modi and hs Australian counterpart Scott Morrison.

Under the agreement, tariffs will be eliminated on more than 85 per cent of Australian goods exports to India (valued at more than $12.6 billion a year), rising to almost 91 per cent (valued at $13.4 billion) over 10 years.

The benefits of IndAus ECTA include:

–Sheep meat tariffs of 30 per cent will be eliminated on entry into force, providing a boost for Australian exports that already command nearly 20 per cent of India’s market;

–Tariffs on wine with a minimum import price of US$5 per bottle will be reduced from 150 per cent to 100 per cent on entry into force and subsequently to 50 per cent over 10 years (based on the Indian wholesale price index for wine);

–Tariffs on wine bottles with a minimum import price of US$15 will be reduced from 150 per cent to 75 per cent on entry into force and subsequently to 25 per cent over 10 years (based on the Indian wholesale price index for wine);

–Tariffs up to 30 per cent on avocados, onions, broad, kidney and adzuki beans, cherries, shelled pistachios, macadamias, cashews in-shell, blueberries, raspberries, blackberries, currants will be eliminated over seven years; and

–Tariffs on almonds, lentils, oranges, mandarins, pears, apricots and strawberries will be reduced, improving opportunities for Australia’s horticulture industry to supply India’s growing food demand.

Speaking after the signing of the accord, Modi noted that this was his third interaction with his Australian counterpart in the last one month. He commended the two trade ministers and their team for a successful and effective engagement.

The PM said that the signing of IndAus ECTA in such a short span of time reflected the depth of the mutual confidence between the two countries. He underlined the huge potential that existed in the two economies to fulfil the needs of each other and expressed confidence that this agreement would enable the two countries to fully leverage these opportunities.

“This is a watershed moment for our bilateral relations”, he emphasised. The PM said, “On the basis of this agreement, together, we will be able to increase the resilience of supply chains, and also contribute to the stability of the Indo-Pacific region.”

Australian PM Morrison also noted the remarkable scale of cooperation between the two countries in recent years and thanked Modi for his leadership.